Limited Run said it could only verify 15-20% of the clicks on its site through a host of standard analytic solutions, which led to it building its own custom software for tracking.
The company explains:
Limited Run claims they contacted Facebook, who “wouldn’t reply.”
Facebook declined to respond immediately on this issue when reached by BI.
In an e-mail, Tom Mango, co-founder of Limited Run, explained further:
As it turns out, this issue—while not everyday news—is not new for Facebook. In June of 2009, complaints arose regarding discrepancy in ad clicks versus what clients could verify. Facebook verified a discrepancy and claimed to be implementing appropriate changes.
A month later, RooZoo and Unified ECM filed lawsuits alleging fraud. In April of this past year, the two companies along with others were denied certification for a class action suit in a District Court in California.
The final straw for Limited Run came unrelated to the click issue, it was regarding changing the name on its company page:
While we were testing Facebook ads, we were also trying to get Facebook to let us change our name, because we’re not Limited Pressing anymore. We contacted them on many occasions about this. Finally, we got a call from someone at Facebook. They said they would allow us to change our name. NICE! But only if we agreed to spend $2000 or more in advertising a month. That’s correct. Facebook was holding our name hostage
In regards to that specific issue, Facebook gave us the following statement:
We’re currently investigating Limited Run’s claims. For their issue with the Page name change, there seems to be some sort of miscommunication. We do not charge Pages to have their names changed. Our team is reaching out about this now.
Unlike others, Limited Run isn’t accusing Facebook of fraud. The company told TechCrunch it could have been a competitor attempting to sabotage the firm through increased ad costs. Nonetheless, Facebook admits it might have as many as 50 million fake users.
Mango reiterated that it wasn’t the clicks that led Limited Run to leave Facebook, it was the customer service. While he acknowledges Limited Run is smaller than a lot of Facebook’s clients, it raises questions over how widespread the problem might be, even if it’s not widely reported. At a time when effectiveness of the social network’s ads are constant debate—this surely doesn’t help.